If a country has a trade surplus then
a. S > I and Y > C + I + G.
b. S > I and Y < C + I + G.
c. S < I and Y > C + I + G.
d. S < I and Y < C + I + G.
a
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The deviation of unemployment from its natural rate is called
a. the economic rate of unemployment. b. cyclical unemployment. c. frictional unemployment. d. structural unemployment.
In an open economy with a given level of real interest rates and risk, an increase in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.
A. decrease; increase B. decrease; decrease C. increase; decrease D. increase; increase
Refer to the given data. If the firm is hiring workers under purely competitive conditions at a wage rate of $10, it will employ:
A. 2 workers.
B. 3 workers.
C. 4 workers.
D. 5 workers.
If the economy is in a recession, the inflation rate is ________ it would be at potential GDP. Other things equal, if the government implemented an expansionary fiscal policy, the inflation rate would ________
A) greater than; remain constant B) greater than; decrease C) less than; increase D) less than; remain constant